Intercity Buses Market Size

Intercity Buses Market Size

Intercity Buses Market size was valued at USD 76 billion in 2023 and is estimated to register a CAGR of over 8% between 2024 and 2032. Growing road infrastructure developments across the cities are majorly driving market growth. Modernized roads and highways can speed up intercity bus travel times, increasing the bus's ability to compete with other forms of transportation such as private cars or trains. For instance, in 2021, the U.S. government signed the Bipartisan Infrastructure Law which directed USD 1.2 trillion of federal funds toward energy, transportation, and climate infrastructure projects.

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Moreover, rising fuel prices across the globe are another driving factor for intercity bus adoption as people are using government as well as commercial transportation services rather than private vehicles. For instance, according to EU data, in 2022, distilleries in the United States held 22 million barrels (-16%) less than the previous seasonal average. Inventory levels in Europe at the end of December were 20 million barrels (-5%) lower than the previous 10-year average. The EU report also stated that, although crude prices have only climbed by 2% since the beginning of the year, gasoil cracks for April 2024 have increased by 37%; as a result, gasoline prices have increased by 9%.
 

Furthermore, intercity bus companies frequently provide flexible timetables and a variety of route alternatives driving the demand for intercity bus travel across the globe. The intercity buses enable passengers to select the departure and destination times that best fit their needs. Passengers who appreciate convenience and personalization in their travel arrangements are drawn to this flexibility.
 

Private vehicles, trains, and airplanes are some transportation options that intercity buses compete with. Every mode has benefits and drawbacks; thus, to draw customers, buses need to provide competitive pricing, comfort, and convenience.
 

Intercity buses are linked to less affluent passengers or less ideal travel experiences in particular areas. For bus companies looking to reach a wider range of riders, changing this attitude and enhancing the image of bus travel may be a challenge. Moreover, owing to factors including bad weather, mechanical problems, and traffic congestion, it is difficult to follow timetables. Passengers may get irritated by delays and lose trust in the bus service.